Is Chrysler Heading Towards Bankruptcy?

Chrysler has recently been brushing off rumors that the struggling automaker is on the verge of bankruptcy. Recently, the automaker accepted a loan of $2 billion to be used for improving the automaker’s current model lineup which is in need of revamping according to Used Cars Lamesa TX customers, but some expect that the money was to save the company from filing bankruptcy.

Although Chrysler has denied the rumors, the automaker has needed to issue a statement to deflect the fervor. The statement said that the statement has no merit and is completely false, implying that Chrysler’s financial standing is on stable ground.

Many of the Chrysler bankruptcy rumors have reportedly originated in Europe, and were spawned primarily by the $2 billion loan that Chrysler’s owner, Cerberus Capital Management and Daimler AG has taken out.

Cerberus currently holds an 80 percent stake in Chrysler. Despite its sale from Daimler AG, the German automaker still holds a minority stake in the company, and has provided about $1.5 billion of the total loan amount to help Chrysler.

* * *

Find out more about new Chrysler vehicles on this blog.